UK: Chancellor Reeves To Address Commons ~1230GMT

Chancellor of the Exchequer Rachel Reeves is set to deliver a ministerial statement in the House of Commons at around 1230GMT (0730ET, 1330CET) regarding her recent trip to China for talks with senior officials. While the China trip is ostensibly the reason for the statement, it is likely that - if she does not address it herself - then during questions after the statement, the chancellor will be asked about the state of the UK's public finances amid elevated borrowing costs, the prospect of gov't spending cuts or tax rises to address the issue, and indeed the longevity of her own position. 

• Prime Minister Sir Keir Starmer was asked on 13 Jan whether Reeves would remain in office throughout the current parliament. He refused to do so, instead only saying that she had his full confidence. This was seen as swerving the issue. Later, a Downing St. spox did eventually confirm that Reeves would remain as chancellor for the entire parliament.
• Public perceptions of drift and inability to deal with issues has seen Labour's support slump. The latest 12-13 Jan YouGov poll shows Labour retaining the lowest proportion of its 2024 cohort, with just 54% of those who voted Labour in the last GE saying they would do so again. This compares to the right-wing populist Reform UK, retaining 87% of its 2024 voters. The latest poll has Labour on 26% support to Reform UK's 25%. The main opposition centre-right Conservatives sit third on 22%. 

Chart 1. General Election Opinion Poll, %